In an era where efficiency reigns supreme, supply chain management stands as the linchpin of success for businesses worldwide. The intricate web of sourcing, production, and distribution impacts not just profits but the very pulse of our interconnected global economy. 

Today, the landscape is being revolutionized by automated storage systems in warehouses, altering the very fabric of supply chains. They streamline operations, cut costs, and enhance precision, redefining the game. Join us as we delve into the pivotal role that automation plays in shaping the future of supply chain management.

Understanding Automated Storage Systems

Automated storage systems or retrieval systems are computer-aided and help to retrieve items or store them in specific locations. The system usually consists of set places where machines follow planned paths to fetch items. 

If everything is in the right spot, these systems make manufacturing and shipping faster. Automated storage and retrieval systems are often used when there’s a lot to move quickly and precisely.

How it Works

Each of the automated storage systems in warehouses works differently. But they have the common goal of speeding up warehouse processes. It automates the process of storing products in appropriate bins, shelves or other storage locations or retrieving items or loads from storage areas. They reduce the time and manpower needed to retrieve and store items. 

Automation in the end benefits the supply chain processes. There are phases of the supply chain that speed up and require less time thus saving money and time and manual labor when automation is involved. So, let’s see the advantages of automated storage and retrieval systems.

Advantages of Automated Storage Systems in Warehouses

Reduction of Variable Costs

Automated storage systems in warehouses reduce the variable cost of operations. They do so by reducing the manual labor for each task like picking, storing, assembly and inventory replenishment.

Automating Manual and Repetitive Storage

AS/RS solutions also reduce the need for manual labor by automating manual functions. They can automate repetitive storage and retrieval tasks with the automated storage systems in warehouses.

By doing so, companies can increase efficiency and accuracy. Not just that human employees also do not face too much pressure when it comes to delivering on higher-value activities. 

Better Safety

Talking about repetitive tasks, those who handle them can experience fatigue or strain. Likewise many tasks of manual labour in supply chain management pose the risk of errors. There is also the risk of making errors while handling heavy equipment in a manufacturing warehouse. It could result in grave injury or worse. 

Therefore, when companies automated these tasks with automated storage systems in warehouses, they eliminate mistakes that could hinder efficiency. Such equipment also helps to move loads that are too heavy for humans thus reducing the chances of workplace injuries. 

Better Space Utilisation 

Warehouse automation in India need [roper shelving and grouping of items. Products arrive in warehouses at various stages- raw materials, work-in-progress and finished goods. Warehouses thus need to create separate spaces for each in their inventory to keep the processes moving without any hiccups. For this warehouse distribution centres depend on effective space utilisation. 

Most automated storage systems in warehouses require narrow aisles in comparison to factories. It is because narrower aisles free up space and make way for spring more goods.  

Such advantages of automated warehouses, companies can store more items without expanding the facility. Facilities can also use the vertical space- since automated systems can reach higher storage locations. 

With all advantages at their fingertips, companies can use such automated storage and retrieval system examples like vertical carousels, AS/RS cranes, horizontal carousels, conveyor systems, and shuttle systems to streamline item storage and retrieval in various industries. The next step of the process lies in implementing the automation. Let’s see how. 

Implementing Automation 

Step 1: Identify Areas of Improvement and Assess the Need 

Automated storage systems in warehouses allows you to evaluate your warehouse operations and pinpoint where automation could enhance efficiency. After pinpointing potential areas for enhancement, you can then explore the various types of warehouse automation technology that suits our requirements.

Step 2: Determine the Right Tech for You

Choosing the right warehouse automation technology holds the key to achieving success with warehouse automation. Automation technologies eases all functions and processes, even speeding it up. 

Apart from this it is crucial to consider the implementation process when your company is planning for warehouse automation. Implementation is costly and you need to select the “best of the best” when it comes to automated storage systems in warehouses. 

Here are some ideas that you can implement- mobile robots for physical labour and automated storage systems for increasing storage density and cutting down retrieval time. 

Apart from such automated storage systems in warehouses, companies can also have management systems. Management systems offer real-time visibility into the inventory and operations. 

But before implementing, companies must do a budget analysis. They can assess how this implementation will affect their operation costs and budgets. A cost analysis will also give them a clear picture of where and how much money they will save. 

Step 3: Determine the Cost So it Does Not Exceed Budget 

Upon identifying the potential improvement areas, you can research exactly the kind of automation technology that you need. Once done, it is time to implement it. Now, implementation might become costly. That is why you need experts in supply chain management to help you to seamlessly implement the best solution for your needs.

Not just that you also get guidance and support throughout the process. The cost of implementing automated storage systems in warehouses depends on the type of technology. 

Smaller warehouses can go for an affordable option while the larger ones might need a more complex and comprehensive automated storage and retrieval system. 

Now that you have the plan in place and also have a budget for it, you need to start implementing it. Find out below how the implementation system works in supply chain management. 

Step 4: Begin Implementation 

You might have the temptation to work really fast given that you have the software of automated storage systems in warehouses at hand. However, it is not a good idea to do so. You can move as quickly or as slowly as you want. At times there are few rapid changes that happen at the same time. It might lead to more issues than resolutions. 

That is why it is crucial to start small. Keep it simple and make minor adjustments first. How can you do so? With the help of automated storage systems in warehouses, do the following:

Add barcode scanners or modify repetitive tasks with automation.  Remember, the goal is to reduce or completely eliminate time-consuming tasks. Every little change and automation can positively impact the process and increase productivity. 

FAQs:How Are Automated Storage Systems in Warehouses Revolutionising Supply Chains

What is automated storage and retrieval system?

Automated storage systems in supply chain optimise inventory management, reduce handling errors, and expedite order fulfilment, enhancing overall supply chain efficiency.

How does automated warehousing work?

Automated warehousing uses robotics and computer systems to manage inventory, handle goods, and streamline logistics processes. It relies on technology to automate tasks, reducing human intervention and increasing efficiency.

What are the options for automated storage systems?

There are a few options in automated storage systems like the AS/RS (Automated Storage and Retrieval Systems), carousels, vertical lift modules, and conveyor systems. These solutions optimise warehousing efficiency by automating storage and retrieval processes.

What is the global warehouse automation market?

The global warehouse automation market refers to the industry’s size and value, encompassing technologies like robotics, AI, and automated systems. This industry attained a new peak of USD 16.23 billion in 2022 and there are estimations of it hitting a new height of USD 71.03 billion in 2032 at a CAGR of 15.91% in the 2023-32 period. 

How do automated storage systems enhance efficiency and reduce costs in warehouse operations and supply chains?

Automated systems help to scan and track inventory levels, reducing the risk of stockouts and overstocks. It results in better demand planning and forecasting, reducing waste and improving customer satisfaction. Automation also reduces errors in order picking and packing.


Automated storage systems in warehouses using inventory tracking and warehouse management systems is tremendously crucial to the evolution of modern warehouse management. 

Delivering products from one place to the other with little to no human contact helps supply chains become more rapid, seamless in their order fulfilment capacities. That is why companies and businesses need to avail the solution from experts at Qodenext  to meet customer expectations with the best technology.